Securing Financial Assistance in Colorado: A Guide for Homeowners Hit by COVID-19
In the midst of an unspent $121 million in federal COVID mortgage assistance, 15 local governments and nonprofits in Colorado are working tirelessly to ensure the funds are properly utilized. These funds form part of the $175 million allocation to Colorado from the American Rescue Plan Act to aid in mortgage assistance during 2021.
As the December 2024 deadline approaches, the Department of Local Affairs has expanded its pilot program to expedite the distribution process. Among these efforts, Aurora has introduced the Aurora Emergency Mortgage Assistance Program. This program, funded by a $1.75 million allocation, provides eligible homeowners with grants ranging from $10,000 to $40,000 to help them maintain their housing status.
Alicia Montoya, Aurora’s manager of housing and community development, spoke on the city’s struggle with rising housing prices and emphasized the importance of resources for homeowners. “Aurora has always been known for being an affordable city. But we are experiencing an increase in housing prices, just like any other place in Colorado,” she explained. “There aren’t a whole lot of resources for our homeownership community, and this is one, and so we absolutely jumped on it and want to make this money available.”
The financial pressure is growing for many homeowners as real estate prices continue to soar. The situation threatens to displace many individuals who, after losing their homes, may find it increasingly difficult to reenter the property market.
Until January, a small pilot program ran under the state’s Emergency Mortgage Assistance Program. This initiative involved four Colorado nonprofits in the distribution of funds. As of January 31, $19.9 million had been distributed, leaving $121 million still available for allocation. A total of $34 million has been earmarked for homeowner legal assistance, homeownership counseling, and program administration.
Colorado residents seeking emergency mortgage assistance can apply via the Department of Local Affairs website. The application is universal across the state and can be processed by any agency regardless of an individual’s location.
The funding can be utilized to cover a range of housing-related expenses, including mortgage payments, homeowners association fees or liens, condominium association fees, utilities, delinquent property taxes, and homeowner’s insurance premiums. Those facing a potential foreclosure are prioritized in the application process.
Upon application approval, the funds are directly sent to the mortgage provider or lender. In the event of a denial, applicants can appeal within 60 days. The application process typically takes about 30 days, with an additional 90 days for mortgage lenders to receive and process the payment.
The assistance program has provided a beacon of hope for many, as attested by Miranda Minton, homeownership manager for Neighbor to Neighbor in Fort Collins, one of the organizations distributing the funds across the state.
The impact of the program is widespread, with organizations like Neighbor to Neighbor and La Puente Home Inc., in Alamosa, having distributed millions of dollars to hundreds of households since the program’s inception.
However, with the looming threat of rising foreclosure filings and large forbearance balances, there is a stark reminder of the continued hardship caused by the pandemic. As Callie Adams, director of crisis prevention at La Puente Home, asserts, the implications of the pandemic’s economic impact may be much further reaching than many realize.
Assistance recipients like Melissa Richardson have expressed gratitude for the support, stating that the program provided a much-needed fresh start. The sentiment is shared by an anonymous recipient facing foreclosure, who affirmed that the assistance helped them retain their home.
